A Guide for the 2025 Tax Year
💡 Did you know? You can support Arizona charities AND reduce your state taxes dollar-for-dollar! The QCO tax credit is one of the best-kept secrets in Arizona tax planning.
What is the Arizona QCO Tax Credit?
The Arizona Qualified Charitable Organization (QCO) tax credit is one of the best ways to support Arizona charities while also reducing your state taxes. This program allows you to donate to organizations that help low-income Arizona residents and receive a dollar-for-dollar tax credit on your Arizona state taxes.
A QCO is a non-profit organization that has been certified by the Arizona Department of Revenue. These organizations provide critical services to low-income residents, including assistance to the working poor, support for disabled individuals, and help for children and families in need.
How Does the Tax Credit Work?
The QCO tax credit is a dollar-for-dollar credit, which means every dollar you donate reduces your Arizona state tax bill by exactly one dollar. This is more valuable than a tax deduction, which only reduces your taxable income.
💰 EXAMPLE: If you owe $1,000 in Arizona state taxes and you donate $500 to a QCO, your tax bill will be reduced to $500. You effectively give to charity at no cost to you!
How Much Can You Donate?
For the 2025 tax year, the maximum tax credit you can claim is:
- $495 – Single filers, married filing separately, or head of household
- $987 – Married couples filing a joint return
You can donate more than these amounts, and if your credit is larger than your tax bill, you can carry the extra credit forward for up to five years to use on future tax returns.
⏰ Important Deadline
You must make your donation by APRIL 15, 2026 to claim it on your 2025 Arizona tax return.
✨ Get Double the Tax Benefit!
Here’s where it gets even better: your donation to a QCO can provide both a state tax credit and a federal tax deduction!
- State Benefit: Dollar-for-dollar credit on your Arizona state taxes (up to $495 or $987 depending on your filing status).
- Federal Benefit: If you itemize deductions on your federal tax return, you can also deduct your QCO donation, which can reduce your federal taxes too.
This means you can reduce both your state and federal taxes with the same donation!
How to Claim Your Credit
Claiming your QCO tax credit is easy:
- Make a donation to a certified QCO (like Senior Hope)
- Keep your donation receipt from the organization
- File Arizona Form 321 with your state tax return (the organization will provide their QCO code)
❤️ Make a Difference: Support Senior Hope
Senior Hope is a certified Qualified Charitable Organization that provides critical assistance to low-income seniors facing a crisis or hardship. Many seniors in Arizona live on fixed incomes and struggle to afford basic necessities like food, utilities, medical care, and housing repairs.
When you donate to Senior Hope, you help provide emergency assistance to seniors in their time of greatest need. Your donation might help a senior keep the lights on, put food on the table, or get the medical care they desperately need.
Your donation of any size will make a world of difference for a low-income senior in need.
And thanks to the Arizona QCO tax credit, you can support these vulnerable seniors while also receiving a dollar-for-dollar credit on your state taxes.
Don’t wait – remember that donations must be made by April 15, 2026 to count for the 2025 tax year. Every dollar you give makes a real difference in the life of a senior facing hardship.
Give today and know that your generosity is changing lives.